Holiday pay and umbrella companies – the facts

An employer is responsible for paying holiday pay. When you use an umbrella company,it is you who covers the cost,not the company. Usually the amount of holiday pay works out at 12.07percent,which is 5.6 weeks divided by the remainder of the year (46.4 weeks). Umbrella companies accrue holiday cover and keep it till you take off time since your holiday pay comes out of your money. Other companies might pay you month or every week instead. Both options will be offered by some companies,but might use one by default and ask you to request the alternative if you want it. Your holiday pay should be shown as a separate item on your payslip,and can not be included in your pay.

When you choose an umbrella company,look at how you can check on your holiday pay. Umbrella companies have handy portals that allow you to check details,including holiday cover you have available. But if you can not easily see how much has been accrued,you can just work it out by using the percentage above (12.07%). Simply calculate the hours thatyou have worked and use the percentage.

It’s important when you’re taking a look at umbrella companies in relation to be careful. If a company is not open about their holiday pay policies and procedures,you might need to be concerned about how they manage things. Some umbrella companies are more compliant than others,so you want to be wary of any that might not make it clear how they pay out holiday pay for contractors. Make certain you look at the employment contract that you are given so thatyou understand how you’ll receive holiday pay from the company.

If you use an umbrella company,you need to get holiday pay. Do not forget to check how you’ll be paid when picking a company.